Age and gender are two of the main factors insurance companies use to determine auto insurance premiums. Insurers view these features as valuable information about your driving experience and the likelihood that you will have an accident. The less likely you are to have an accident based on these two factors, the lower the cost the company will incur in insuring you and the cheaper the quote you will receive.
but this variation makes it somewhat difficult for a potential customer to know if you are being offered a fair rate or if you are being scammed. With that in mind, we’ve run through the numbers to find the average cost of car insurance in Singapore based on your age group and gender. We hope this gives you the knowledge you need to know a good deal when you see one.
table of contents
- average cost of auto insurance by age
- average cost of car insurance by gender
average cost of car insurance by age
The team at ValueChampion collected quotes from a collection of leading insurers in Singapore to see how age affects the cost of car insurance. The rates below assume 5 years of driving experience and a 0% No Claims Discount (NCD) for consistency, and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher NCD. For example, for those with a clean driving record, your NCD could save you over 50% on your auto insurance premiums.
average cost of car insurance for drivers in their twenties
Generally speaking, insurance companies in Singapore charge the highest rates to younger drivers, while older drivers tend to get much cheaper rates. We found that 20-year-old drivers are charged an average contribution of s$2,165, 36% higher than the average rate charged to 40-year-old drivers ($1,596). This is because, statistically, younger drivers are at much higher risk of having an accident, due in part to having relatively fewer years of experience behind the wheel. In addition to lack of driving experience, rates increase for younger drivers due to their propensity for reckless driving. this is exemplified by studying the quotes we collected, where all the drivers had the same driving experience but were of different ages. As further proof of this, an online survey conducted by AIG Singapore in 2015 found that 63% of respondents aged 18-35 admitted to unsafe behavior on the roads.
young and inexperienced driver glut for drivers in their twenties
20-year-old drivers should also keep in mind that, in addition to higher premiums, they may be forced to pay a deductible to a young and/or inexperienced driver (generally in the range of 2,000 to 3,000 Singapore dollars) in addition to the mandatory fee. standard excess they must pay each time they file a claim. this is something that is very important to pay attention to, as different companies designate different ages under which the fee is imposed.
what does this mean? If your insurance policy has a standard deductible of S$600 and a young and/or inexperienced driver deductible of S$2,500, you will have to pay S$3,100 out of pocket each time you have an accident before receiving benefits from your insurer if you’re 20, we recommend that you read the fine print carefully to see what you’ll be obligated to pay before committing to a plan. it may be worth paying a slightly higher premium if the plan comes with a significantly lower young and/or inexperienced driver excess, or if you can avoid paying it at all. To learn more about which insurers offer the best deals to young drivers, you can read our guide to the best car insurance plans in Singapore.
average cost of car insurance for drivers between 30 and 50 years old
While car insurance premiums decline substantially for male and female drivers in their 30s and 40s, we found that insurance premiums typically start to rise again once drivers pass the age of 50 . This is because many insurers believe that drivers become more accident prone as they age. we found that 50-year-old drivers faced an average fee of S$1,684, a 6% increase over 40-year-olds.
Although some insurers in Singapore continue to increase premiums as drivers reach the age of 60, this is not the case* for others. while many of the companies studied charged higher rates for men and women in their 60s than for men and women in their 50s (axa, aviva, budget direct, fwd, hl insurance & sompo), etiqa & Directasia actually charged lower rates for the 60-year-old cohort. We strongly advise older auto insurance customers to pay close attention to this when considering which plan to purchase.
average cost of car insurance by gender
We found that male drivers consistently pay more for their car insurance premiums than female drivers. Drivers in their 20s had the largest cost difference between genders, with men paying an average of 7.8% more than women for their car insurance policies. the difference in cost decreases as drivers age, and in fact, our 2020 data showed that women in their 50s and 60s pay slightly higher premiums than their male counterparts by just a few dollars.
Men have to pay higher premiums than women in all age groups because insurance companies consider them much more prone to accidents and therefore a higher risk. In fact, Aviva claims data for 2015 shows that men are 1.4 times more likely to be in an accident than women.
these rates assume 5 years of driving experience and a 0% no claim discount (ncd) and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher ncd . For example, for those with a clean driving record, your NCD could save you up to 50% on your auto premiums.
To arrive at our determinations of the average cost of car insurance for Singapore consumers, we curated data and collected quotes from seven leading car insurance providers in Singapore.
To standardize our results, we needed to make certain assumptions about the type of plan and level of coverage sought by the average consumer. this study assumes standard comprehensive coverage, as comprehensive coverage is mandatory for owners driving cars less than 10 years old that are still in financing. Due to the cost of cars in Singapore, this makes it the most common type of insurance plan purchased. In an effort to ensure that the quotes collected reflected comparable levels of coverage, we standardized coverage for medical expenses, personal accident benefits, and loss of use for all quotes we collected around what is generally considered a “value” plan. which excludes other “bells and whistles” optional features.
The driver profile we used to obtain quotes held all variables except age and gender constant. he/she is a single driver of a 2019 toyota corolla altis 1.6, first time car owner and relatively new driver, with 5 years of driving experience, no claims filed and 0% NCD (no claims discount). he/she works indoors like a professional. average costs reflect the average of quotes collected for a male and female driver profile.
quotes and information used for this study were collected from 12 car insurers in singapore. These companies were chosen based on their popularity with Singaporean consumers, as well as how easy it is to get quotes and detailed information about their plans.
*a good example of this is liberty insurance, which in collaboration with the automobile association of singapore (aas) and the optometry association of singapore launched a new auto insurance plan in 2014 designed specifically for older drivers with a good driving record, the aa senior. motor policy plus.
**estimates here are from valuechampion alone and have not been reviewed, approved or otherwise endorsed by the insurance providers.